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Zijin and Ivanhoe

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    http://www.miningmx.com/page/news/markets/1650469-Zijn-to-buy-C105m-stake-in-Ivanhoe-Mines





    Zijn to buy C$105m stake in Ivanhoe Mines


    David McKay | Mon, 23 Mar 2015 11:17
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    [miningmx.com] – IVANHOE Mines, the Toronto-listed platinum and base metals development company, is to issue new shares equal to 9.9% of the firm to Zijn Mining Group raising C$105m ($82m) for working capital purposes.

    Ivanhoe Mines is developing the Platreef platinum group metals (PGM) project in South Africa's Bushveld Complex as well as the Kamoa copper project in the Kantanga province of the Democratic Republic of Congo (DRC).

    The investment by Zijn Mining, one of China's largest gold producers, is its second in South Africa's PGM sector in as many years. In 2014, it bought about A$20m worth of convertible bonds in Nkwe Platinum which is developing Garatau project.

    Zijn Mining first invested in South Africa in 2007 when it became a partner in the Blue Ridge and Sheba's Ridge projects owned by then UK-listed firm Ridge Mining. Neither of the projects were a success.

    However, Zijn's main interest in Ivanhoe Mines would appear to be Kamoa as the two companies also announced that they were in "friendly discussions" about the strategic co-development of the prospect.

    Under terms of the agreement between Ivanhoe Mines and Zijn Mining, which was signed in Hong Kong, Ivanhoe Mines will issue about 76,8 million shares to Zijin through a private placement at a price of C$1.36 per share - a significant premum to the 96 Canadian cents at which Ivanhoe last traded.

    Robert Friedland, president of Ivanhoe Mines, said Zijin's proposed investment represented the "... first major commitment by an international mining company to provide support for all of Ivanhoe's development-stage projects in South Africa and the DRC.

    "We are delighted to welcome Zijin Mining both as an old friend of Ivanhoe Mines and a strategic investor that shares our long-term vision," said Friedland in a statement.

    "We also have agreed to continue to explore additional opportunities to collaborate on the advancement of all three of our world-class projects," he said.

    The Platreef mine – which is to be built near Mokopane in Limpopo Province – is scheduled to start production in 2018 on current planning and ramp up to full production by 2020 at which point it will be the “single, largest and most sustainable platinum mine in the world,” said Friedland in February.

    The Zijin private placement is scheduled to close on or about April 20, 2015, the companies said.
 
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